Question: Please help me with these. It's about Fixed Order Quantity model. Thank you a lot. FIXED-ORDER QUANTITY MODEL 1. Given the following data: Annual demand,

Please help me with these. It's about Fixed Order

Please help me with these. It's about Fixed Order Quantity model. Thank you a lot.

FIXED-ORDER QUANTITY MODEL 1. Given the following data: Annual demand, D = 1,000 units Ordering cost, S = 200 per order Holding cost, H = R50 per unit per year Lead time, L = 5 days Cost per unit, C = 500 a. Find the EOQ. b. Find the reorder point. C. What would be your ordering policy for this item? d. Find the total annual inventory cost. 2. Each year, Y Company purchases 20,000 units of an item that costs - 640 per unit. The cost of placing an order is R 480, and the cost to hold the item in inventory for one year is 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 3. A fastfood outlet uses 120 six-ounce plastic cups each day and plans to be open 360 days a year. The cups cost P 9 per dozen; Ordering costs are 200 per order, and carrying costs are 50% of the item unit cost (since space is a premium). a. Find the EOQ, if delivery is instantaneous. b. Currently, cups are ordered every 30 days. 1) Compare the current ordering quantity vs. the optimal order quantity. 2) Compare the current vs. the optimal total annual inventory cost. Which ordering policy is more advantageous in terms of cost savings. By how much

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